Inheritance tax: Estate planning expert shows how families can potentially pay zero on assets up to £1 million.
In an exclusive GB News interview, Steve Bish, founder of Steve Bish Estate Planning, urged readers to maximize current allowances in the tax code after what he calls the “terrible news” in last month’s budget. He suggests taking full advantage of the available tax-free thresholds, including the provision that children can inherit up to £650,000 tax-free from both parents.
Bish explains that married couples and civil partners have historically avoided inheritance tax when passing to a surviving partner due to spousal exemption. The tax burden typically shifts to the next generation, but new rules allow both parents’ allowances to be claimed for their children, effectively raising the threshold to £650,000. Additionally, if property passes directly to descendants, each property can qualify for an extra £175,000 inheritance tax-free for children or grandchildren, potentially lifting a couple’s total exemption toward a £1 million figure when combined with the spouses’ allowances and the home’s value.
As house prices rise, reaching or exceeding one million pounds in assets is increasingly common, Bish notes. The award-winning adviser emphasizes gifting strategies to reduce future tax liabilities. One key tactic is maximizing the annual gift allowance: up to £3,000 can be given each tax year without it being added to the estate’s value. Beyond this, individuals can use the normal expenditure out of income exemption to gift money or items tax-free, provided the donor retains enough income to maintain their usual living standards.
For those with larger estates, Bish highlights a charitable giving option: giving at least 10% of the estate to charity can reduce the effective inheritance tax rate from 40% to 36%. He also points to other strategies such as business property relief bonds and loan trusts, and stresses the importance of consulting a qualified financial planner to maximize what’s passed to loved ones rather than to HMRC.
Bish has written a guide titled Where There’s A Will, There’s A Way, inspired by his late friend Carl. The book aims to demystify probate, inheritance tax, safeguarding dependents and pets, digital assets, and more, offering practical steps for those who haven’t yet made a will.
Carl’s story illustrates the consequences of intestacy when no will exists, forcing families to interpret government rules to settle someone’s affairs. Bish hopes his guide can spare others from similar stress by providing clear, plain-language instructions during challenging times.
Where There’s A Will, There’s A Way is set for release soon, targeting parents, homeowners, and business owners who want straightforward tools to simplify what happens after death. For more information, visit the author’s site at www.sbishestateplanning.co.uk.
